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Strategies & Market Trends : Steve's Channelling Thread -- Ignore unavailable to you. Want to Upgrade?

To: Steve Lee who wrote (7221)	11/5/2000 3:23:43 PM
From: Zeev Hed	Read Replies (1) \| Respond to of 30051

Frankly, I do not think that we have "punitive" taxes for the the rich in our country, you guys with 17% (20%?)VAT are suffering much more, and the European economies are showing it. I pay mostly just 20% taxes (a quirk in our tax system treating exclusive licenses as long term capital gains and charging no payroll taxes on such income), my wife's effective tax rate is however 55% (and I told her many times that her work is "sysiphian") Any tax change, IMHO, should always be phased in very gradually, major changes cause economic dislocations (capital flight to lower taxation rate etc.). I am no expert in taxation, but my "fairness doctrine" is against consumption taxes (like VAT) and taxes that are designed to cause capital to flow to economic activities the government as chosen as the "right type". I also think that corporations have recently engaged in a huge tax evasion scheme with the massive continuous buy back they are conducting. If dividends are taxable (I think they should not be, due to double taxation), then shares buy back are tax free dividends, and should be taxed as such. Any time one creates "preferences", attorneys and accountant find ways to reclassify income into these preferences. If I had enough time (to study more economics and econometrics as well as mass psychology and few other important fields necessary for such an endeavor, all fields in which I am completely ignorant) I probably could come out with a fairer and more rational way to finance government, but frankly, that is beyond my current abilities, so all I can do is to try and assess specific proposals and how they may affect the economy and through that the market. I came to the conclusion that post elections we will eventually come down (the market), if we get the shrub, we come down very hard. Zeev